Legal Question in Banking Law in India

I had taken personal loan from "Bank A", and now "Bank B" is claiming that the said loan is transferred to it.The said loan had become an NPA at the time of transfering the loan. I read an article in the following link and would like to ascertain following points.

http://rbi.org.in/scripts/NotificationUser.aspx?Id=1724&Mode=0

1. It is said that the loan should have become an NPA for atlease 2 years before the bank can sell the loan to the buying bank.

2. Also the buying bank should hold these NPFA for atlease 15 months in their books before they can further sell these assets. Also it can not be resold to the bank from which they bought this NPFA.

Can you please provide your opinion on the above points. Also what will happen to the security cheques I had provided the bank A - at the time of disbursement of the loan?


Asked on 7/06/10, 11:04 pm

2 Answers from Attorneys
J. Radhakrishnan independent Practice

The anwers to your questions would not bring you any relief. Try to settle with the bank which has purchased the debt by submitting a viable one time settlement proposal. If they go to court, contest the validity of the transfer and also any discrepancies you find in the account. Take the assistance of a competent local lawyer.

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Answered on 7/07/10, 7:04 pm
Pravin Vaidya Independent

I agree with the above opinion

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Answered on 7/16/10, 11:22 am


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